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Preparation for new Serbia-Hungary oil pipeline begins

The Minister of Mining and Energy, Dubravka Đedović, recently met with the Acting Director of the Serbian oil transportation company Transnafta Pančevo, Bogdan Kuzmanović, to discuss the preparation of the construction of a new oil pipeline between Serbia and Hungary, the Serbian Mining and Energy Ministry announced on 8 February.

“The implementation of this project will ensure the diversification of crude oil supply and increase the security of supply to the Pancevo oil refinery. Also, the total cost of transporting crude oil would be reduced compared to the transport to Omišalj and then the oil pipeline to the border with the Republic of Serbia,” Minister Đedović said.

The pipeline, which will run from Adja to Novi Sad, is expected to be 128 kilometres long. The cost of the construction on Serbia’s territory is estimated at 100 million euros, with Transnafta as the investor on the Serbian side.

A “strategic partnership” amid the energy crisis

Last week, the Minister of Mining and Energy, Dubravka Đedović, also met with the Minister of Foreign Affairs and Trade of Hungary, Peter Szijjártó, to discuss energy security in the region and strengthening cooperation between the two countries in the area of energy.

“During the energy crisis, Serbia and Hungary strengthened their partnership relations and our cooperation in this area is of a strategic nature. The transit of natural gas to Hungary via Serbia flows smoothly and will continue to do so, while gas storage in Hungary was crucial to be ready for the heating season,” said Ms Đedović.

“With the completion of the construction of the gas interconnector with Bulgaria in the fall, Serbia will become part of the Southern Gas Corridor, which will mean greater security of supply for Serbia, but also the possibility that, by connecting with neighbours through our country, gas from the Caspian region will also reach neighbours in the region but also the EU countries,” she added.

The Minister of Foreign Affairs and Trade of Hungary, Peter Szijjártó, said that, despite all the events, Serbia and Hungary have managed to guarantee a stable supply of energy in the energy crisis, which they would not have been able to do without strategic cooperation and strategic partnership.

“We have already started negotiations with Azerbaijan on the purchase of gas, but the supply requires investments in the construction of new gas interconnectors and the expansion of existing ones. We are also working on doubling the capacity of the electricity transmission network between the two countries by 2028, which is particularly important because we hope that by 2030 PAKŠ 2 and PAKŠ 3 will be operational within the framework of the nuclear power plant in Hungary,” Mr Szijarto added.

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